Biden‐McCarthy deal a modest start on reducing federal budget deficits by $1.5 trillion over 10 years, during which spending will exceed revenue by $20 trillion. (Commentary)
By Chris Edwards
Congress is considering the Biden‐McCarthy debt‐reduction deal. The Fiscal Responsibility Act of 2023 would reduce deficits by $1.5 trillion over the coming decade.
The reduction would be a start at righting the federal government’s fiscal ship, but just a small start.
The $1.5 trillion in savings would take a very modest bite out of the $20 trillion in cumulative deficits and $80 trillion in cumulative spending expected over the coming decade.
Once congress gets this budget battle behind it, it can move on to larger reforms.
Originally published by the Cato Institute. Republished with permission under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
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